Early In Its fiscal year ending December 31, 2021, San Antonlo Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and exlsting bullding were purchased by payling $210,000 Immedlately and signing a noninterest-bearling note requiling the company to pay $610,000 on March 28,2023. An Interest rate of 8% properly reflects the time value of money for this type of loan agreement. Title search, Insurance, and other closing costs totaling $21,000 were paid at closing. At the end of Aprll, the old building was demolished at a cost of $71,000, and an additional $51,000 was paid to clear and grade the land. Construction of a new bullding began on May 1 and was completed on October 29 . Construction expenditures were as follows: (FV of \$1. PV of \$1. FVA of \$1, PVA of \$1. FVAD of \$1 and PVAD of \$1) (Use approprlate factor(s) from the tables provided.) San Antonio borrowed $3,000,000 at 8% on May 1 to help finance construction. This loan, plus interest, will be paid in 2022. The company also had a $5,350,000,8% long-term note payable outstanding throughout 2021 . In November, the company purchased 10 identical pleces of equipment and office furniture and fixtures for a lump-sum price of $610,000. The falr values of the equipment and the furniture and fixtures were $426,000 and $284,000, respectlvely. In December, San Antonio paid a contractor $290,000 for the construction of parking lots and for landscaping. Required: 1. Determine the Initlal values of the varlous assets that San Antonio acquired or constructed during 2021. The company uses the speclfic Interest method to determine the amount of Interest capitalized on the bullding construction. (HInt: Expenditures on March 28 and Aprll 30 to acquire land on which to construct the buliding are Included as part of accumulated expenditures for determining the amount of Interest capitalized on the building. This means the Interest capitalization perlod begins on March 28.) 2 How much Interest expense will San Antonlo report In its 2021 Income statement? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. How much interest expense will San Antonio report in its 2021 income statement? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)